An international expansion strategy comprises market entry strategy including crucial choices in regard to primary markets of focus, determination of target customer and channel strategy, resource allocation, product and service value offerings, brand positioning, and creation of an operating model. A firm seeks to achieve faster growth, compete, achieve higher profits, grow a brand, capitalize on economies of scale, have greater impact, or occupy a larger market share. Research related to market expansion strategy has primarily focused on assessing the fit between the organization and external factors such as market attractiveness, competitive advantage and risk, with minimal attention to internal factors such as organizational structure, management systems and corporate culture. Bomona 1985 drew attention to the fact that when the. Because i believe that strategic management is an integral aspect of an organizations business and not just a once per every threeyear retreat, i have used the term strategic management. The outline of such a plan should be prepared and presented by the top management itself, in order to guarantee the companys commitment to the international business strategy chosen. The advantages and disadvantages of strategic management. Strategy refers to a general plan of action for achieving ones goals and objectives.
However, since almost every contractor of decent size attempts geographic expansion sometime in its life, we would be remiss as an advisor to the construction industry not to talk about it and update the. Success depends on confirming that they have fulfilled existing markets. The purpose of the strategic plan is to provide strategic, operational, and financial priorities to guide. Concentration expansion strategy involves safeguarding the present position and expanding in the current productmarket space to achieve growth targets. Therefore, given to these questions, the importance of strategic management should be further investigated. Building a foundation for your future 4 customer characteristics and purchasing hot buttons provide the information needed to decide whether the firm can and should attempt to gain or maintain a sustainable competitive advantage for marketing to a particular market segment lehmann and winer 1994. Making acquisitions is a key element of our portfolio management strategy. Hence to successfully compete, survive and flourish, an enterprise has to pursue an expansion strategy. Pdf the importance of strategic management to business. Focus on relationships cvmc must further develop relationships between the organization, community, staff, leadership, and medical staff partners. Expansion strategy is an important strategic option, which enterprises follow to fulfil their longterm growth objectives. While strategic management connotes the planning, implementation, evaluation, ongoing maintenance, and adjustment of the organizations strategy. The expansion through concentration is the first level form of expansion grand strategy that involves the investment of resources in the product line, catering to the needs of the identified market with the help of proven and tested technology. To be more data driven, look for the right business partner.
It delivers comprehensive coverage of the subject in an easytoread style with extensive examples and a range of free support material that will help you learn actively and effectively. Strategic management meaning and important concepts. Ltasks of strategic management lstrategic management is an ongoing process lwho performs the tasks of strategy lbenefits of managing strategically adapting to change lorganizations should continually monitor internal and external events and trends so that timely changes. In other words, when a firm aims to grow considerably by broadening the scope of one of its business operations in the perspective of customer groups, customer functions and technology alternatives, either individually or jointly. The distinction between strategic thinking, strategic management and strategic planning 45 strategy in actionquick strategic thinking in unfavourable circumstances45 strategy in actionsony the disruptive innovator 50 principles for the successful use of strategy 61 finding the right strategic mix of entrepreneurial creativity and. This article examines amazons current corporate strategy and evaluates its suitability going forward. It defines strategy and explains the key concepts in strategic management. It is used as a caution in periods of high demand not in consonant with economic realities of sustained growth in the economic environment. During the organizational life cycle, managements choose between growth, stability, or retrenchment strategies to overcome deteriorating trends in performance. The expansion strategy is adopted by an organization when it attempts to achieve a high growth as compared to its past achievements. Fundamentals of strategic management second edition. Theres opportunity in an economy that produces and consumes less.
Growth is the dominant goal of the organisations, and in uncertain conditions, this type of mode. Under strategic management, the first step to be taken is to identify the objectives of the business concern. Dec 24, 2018 the broad corporate strategy alternatives, sometimes referred to as grand strategies, are. Hence a corporation organized under the basic principles of strategic management will find a smooth sailing due to effective decisionmaking. Special thanks is extended to those who participated in the case studies by sharing the details of their strategies. Strategic management is the continuous planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. Using the gemstones as an example, a wholesale jeweler could acquire or merge with another wholesale jeweler in an attempt to horizontally integrate the company. Download strategic management notes pdf for mba 2020. In strategic management as a whole, implementation is often not treated as thoroughly as it should be. Business expansion with domain registration manjari singh. Growth strategies, expansion strategies, strategic management. It is a strategy of seeking ownership of or increased control over a firms competitors. A well prepared strategy plan document includes thirteen different sections starting from executive summary and ends with financial projection section. Horizontal integration in strategic management horizontal integration, as we have seen, is a companys acquisition of a similar or a competitive businessit may acquire, but it may also merge with or takeover, another company to strengthen itselfto grow in size or capacity, to achieve economies of scale or product uniqueness, to reduce.
Geographic expansion is undoubtedly one of the most costly and often least successful strategic options that a contractor can employ. Strategic management is all about identification and description of the strategies that managers can carry so as to achieve better performance and a competitive advantage for their organization. No consultant can write a strategic plan for a company. They are the basis of the coordinated and sustained efforts directed towards achieving long term business objectives. Companies investigating potential markets must take stock of their. Companies adopt a market expansion strategy when their growth peaks in existing channels. Equity investment in each other s company is not any focus. Types of expansion strategies expansion through concentration expansion through integration expansion through diversification expansion through cooperation expansion through internationalisation expansion through digitalisation 3.
A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for more specific business unit goals and objec. Analysis of amazons corporate strategy management study guide. Complete a facility master plan and utilize results to develop a. Strategic analysis of starbucks corporation there is an expected shift towards healthy eating and diet among the consumers in 2014, and this could be a potential threat to the industry as they become more aware of issues related to weight and obesity. This document npaes 2016 represents the first full revision of the npaes 2008, and the updated. Growth strategies, growth expansion strategies, market. What is strategic management, and why is it important. An expansion strategy is synonymous with a growth strategy. Strategic analysis overview, examples, levels of strategy. Strategy is developed by significant bold decisions being made. The national protected area expansion strategy, first published in 2008 npaes 20081, presents a 20year strategy for the expansion of protected areas in south africa.
Pdf fundamentals of strategic management second edition. A merger to secure control of capacity in the chosen sector is an example. A white paper in the real world of facility management fm, a plethora of activities fall under the facility managers responsibility, causing frequent lapses into a reactive mode in order to respond to all the requests, orders. The expansion strategy is adopted by those firms who have managers with a high. Mergers, acquisitions and takeovers among competitors allow for increased economies of scale and enhanced transfer of resources and competencies. Strategic rationale to achieve a set of strategic objectives, the strategic rationale plays an important role. The growth strategies have been playing the central role in the expansion, development. A strategic alliance is a form of affiliation that involves a mutual sharing of resources or partnering to improve efficiency.
Their input, advice, and lessons learned, both successes and failures, have been incorporated into this document so that we may all apply better strategic management processes in our organizations. Strategic partnership is a closely related concept. Strategy the word strategy has so many meanings itself and all these meanings are useful, important and relevant to the people who. Business management determines growth strategies in accordance with structures of businesses and the competitive environment by applying analysis and. The broad corporate strategy alternatives, sometimes referred to as grand strategies, are. Pdf research in strategic management in the hospitality.
Strategic management is a broader term than strategy and is a process that includes top management s analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy. A strategy or general plan of action might be formulated for broad, longterm, corporate goals and objectives, for. This paper presents strategic management as an important business management concept. Mergers and acquisitions are usually not central to achieve strategic objectives, as usually there are other alternatives available. The definition of strategic analysis may differ from an academic or business perspective, but the process involves several common factors. They pursue it to gain significant growth as opposed to incremental growth envisaged in stability strategy. The firm can follow either of the five expansion strategies to accomplish its.
What is a market expansion strategy and how can it boost your. Get complete strategic management books, ppt, courses, case study, mcq, syllabus, question paper, questions and answers. Strategic analysis refers to the process of conducting research on a company and its operating environment to formulate a strategy. The development of a business strategy is the exclusive responsibility of the top management. Strategic documents department of environmental affairs. Concentration involves expansion within the existing line of business. International market expansion strategies for hightech. Prepare for growing demands of healthcare in the community cvmc, in working with the community, will develop a focused growth strategy. This analysis is based on the drivers of corporate strategy including the need to grow quickly and more importantly sustain such growth, the need to not lose sight of either longer term profitability and the shorter term results and the balancing of both, and its focus on cost leadership. A strategic plan is a basic roadmap to show how you plan to expand and grow your business. Vertical and horizontal integration in strategic management.
Targets must have a good strategic and cultural fit with our organization, offering attractive financial returns. May 26, 2017 this strategy is common among manufacturing companies evaluating the launch of new products. S omehow the announcement that an organisation intends to concen. Strategic management notes pdf, book, paper mba 2020. Pdf strategic operations management radhitya wirawan. Horizontal integration is accomplished by expansion into additional business activities that are within the same level of the value chain.
Is it smarter to drive additional profitability through rapid expansion or by slower but more assured organic growth. A public administrator must be ready to be a key player in this process and be able to anticipate issues in public discussion just as the manager of a. An organization is said to have competitive advantage if its profitability is higher than the average profitability for all companies in its industry. Growth strategies, expansion strategies, strategic management free download as powerpoint presentation. Strategic management is a broader term than strategy and is a process that includes top managements analysis of the environment in which the organization operates prior to formulat ing a strategy, as well as the plan for implementation and control of the strategy.
We are disciplined when it comes to acquisition prices in order to protect our return on invested capital. What is a market expansion strategy and how can it boost. Strategic management courses is considered one of the most important courses that you will take during mba postgraduate degree as it integrates other courses, builds on them, and acts as a steppingstone to the real world of business the purpose of this course is to enhance your capacity to do the job of a general manager responsible for strategic performance. Assessing the capacity strategic options on capacity.68 842 107 267 1536 71 1445 82 1207 602 56 507 1187 396 708 1470 820 182 1455 1217 1283 798 949 1262 1601 748 998 319 370 13 179 882 898 760 1351